DoubleClick finally bought by Google
Apr 17, 2007
After a long lasting debate with Microsoft, Google finally wins the war and purchases DoubleClick for $3.1 billion in cash.
There are many disputes on whether it was worthwhile for the Google giant to purchase another of the bigs after YouTube and as
Phil Wainewright over at ZDNET wrote: 'Whoever buys DoubleClick at that price will not see a repayment
on their investment. Therefore I surmise that Google will win the alleged bidding war with Microsoft to acquire the company, since
Google has a track record of throwing large piles of cash at iffy acquisition targets'.
Here is a list of the benefits, Google presented in its press release:
- for users, increase of relevancy and quality of ads they see
- for publishers, providing access to new advertisers and opportunity to monetize their inventory more efficiently
- for advertisers, easy way to manage both search and display ads in one place
It seems that Google wants to play a leader role for advertising, on or off the web.
It is also important to mention that Google and DoubleClick have been partners for long time, sharing offices in the same building
in New York with an exchange of employees between the two companies and according to DoubleClick CEO David Rosenblatt, the two
companies share a 'common vision' as 'Internet companies of the same generation.' So it is no wonder Google was
the successor of DoubleClick, realistically Microsoft having no chance.
Google has been expanding lately in many forms of media and it is no wonder it had bought DoubleClick. Google also purchased the
radio ad broadcasting company dMarc with the main goal to bring auction-style radio ads. The company is also experiencing in
magazine and newspaper advertising and moving to TV advertising as well having made a deal with EchoStar Communication's Dish
Network with the plan of using an automated buying and selling system with the possibility of measuring the impact of TV ads
according to CNET.
With the purchase of DoubleClick there is a new advertising platform in Google's hand which uses an online auction style
exchange that is open to any web publisher or ad network.
It is almost sure now that Google will beat Yahoo in the field of display and banner ads where Yahoo is ahead of all its rivals
but probably not for long.
Google CEO Eric Schmidt pointed out that many of Google's advertisers are using DoubleClick's software for buying, selling
and tracking digital advertising. DoubleClick has more than 1,500 clients among which many major companies like AOL which will
certainly not be happy that now Goggle has access to their data. Conflict of interests might arise with publishers and advertisers.
There were rumors that keeping DoubleClick out of Microsoft's hands is worth billions to Google all by itself as it was
competing with another rival Yahoo in the display advertising arena thus keeping out of this field or at least delaying its entry.
What future hides is never sure but Tim O'Reilly believes the future of advertising is pay per action advertising. Once the
DoubleClick gets folded in the Google system engineers will for sure expand its capacity to be able to work with different types of
ads across with different types of media.
With the purchase of DoubleClick, Google has strengthen its competence in the online advertising field with two additional values
which is relationship and technology. The effects will not show immediately but on the lung run for sure it will pay off.
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